A new subchapter has been added to the bankruptcy code making it easier for small businesses with debt of less than $2,725,625 to seek protection under Chapter 11 of the bankruptcy code. Previously a Chapter 11 requires so much detailed reporting and documentation that it has been impractical for a small business to file a Chapter 11. The burdens and costs in doing so were too high, and Chapter 11 bankruptcies were reserved mainly for larger businesses that had sufficient cash flow to justify the time and expense involved. The new provisions provide some new protections for small businesses that may make filing a Chapter 11 bankruptcy worthwhile going forward. Chapter 7 bankruptcy will still be available for liquidating small businesses, and business owners can still take advantage of a Chapter 7 or Chapter 13 bankruptcy.
Are you facing the foreclosure of your home? Has your mortgage company stopped working with…
People often call me and ask whether there is something called a "medical bankruptcy." Although…
When a debtor files for personal bankruptcy, it only addresses pre-bankruptcy debts. Some types of…
It’s always good to pay your debts, if you can keep up with them. But…
There are a number of debts that cannot be discharged when you file for bankruptcy.…
This website uses cookies.